Annual Report 2015 Key Figures I 06
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Annual Report 2015 Key figures I 06 2015 + / – 2014 2013 2012 1 2011 previous Figures in EUR million year Results Gross written premium 17,068.7 +18.8% 14,361.8 13,963.4 13,774.2 12,096.1 Net premium earned 14,593.0 +17.5% 12,423.1 12,226.7 12,279.2 10,751.5 Net underwriting result 93.8 (23.6) (83.0) (96.9) (535.8) Net investment income 1,665.1 +13.1% 1,471.8 1,411.8 1,655.7 1,384.0 Operating profit (EBIT) 1,755.2 +19.7% 1,466.4 1,229.1 1,393.9 841.4 Group net income 1,150.7 +16.7% 985.6 895.5 849.6 606.0 Balance sheet Policyholders´ surplus 10,267.3 +0.3% 10,239.5 8,767.9 8,947.2 7,338.2 Equity attributable to shareholders of Hannover Rück SE 8,068.3 +6.9% 7,550.8 5,888.4 6,032.5 4,970.6 Non-controlling interests 709.1 +1.0% 702.2 641.6 681.7 636.0 Hybrid capital 1,489.9 -25.0% 1,986.5 2,237.8 2,233.0 1,731.6 Investments (excl. funds with- held by ceding companies) 39,346.9 +8.6% 36,228.0 31,875.2 31,874.4 28,341.2 Total assets 63,214.9 +4.6% 60,457.6 53,915.5 54,811.7 49,867.0 Share Earnings per share (basic and diluted) in EUR 9.54 +16.7% 8.17 7.43 7.04 5.02 Book value per share in EUR 66.90 +6.9% 62.61 48.83 50.02 41.22 Dividend 572.8 2 +11.8% 512.5 361.8 361.8 253.3 Dividend per share in EUR 3.25 + 1.50 2, 3 +11.8% 3.00 + 1.25 3 3.00 2.60 + 0.40 3 2.10 Share price at year-end in EUR 105.65 +40.9% 74.97 62.38 58.96 38.325 Market capitalisation at year- end 12,741.1 +40.9% 9,041.2 7,522.8 7,110.4 4,621.9 Ratios Combined ratio (property and casualty reinsurance) 4 94.4% 94.7% 94.9% 95.8% 104.3% Large losses as percentage of net premium earned (proper- ty and casualty reinsurance) 5 7.1% 6.1% 8.4% 7.0% 16.5% Retention 87.0% 87.6% 89.0% 89.8% 91.2% Return on investment (excl. funds withheld by ceding companies) 6 3.5% 3.3% 3.4% 4.1% 4.1% EBIT margin 7 12.0% 11.8% 10.1% 11.4% 7.8% Return on equity (after tax) 14.7% 14.7% 15.0% 15.4% 12.8% 1 Adjusted pursuant to IAS 8 2 Proposed dividend 3 Dividend of EUR 3.25 plus special dividend of EUR 1.50 for 2015, EUR 3.00 plus special dividend of EUR 1.25 for 2014 and EUR 2.60 plus special dividend of EUR 0.40 for 2012 4 Including expenses on funds withheld and contract deposits 5 Hannover Re Group’s net share for natural catastrophes and other major losses in excess of EUR 10 million gross as a percentage of net premium earned (until 31 December 2011: in excess of EUR 5 million gross) 6 Excluding effects from ModCo derivatives and inflation swaps 7 Operating result (EBIT) / net premium earned The Group worldwide I 07 A complete list of our shareholdings is provided on page 160 et seq. of the notes. The addresses of the Hannover Re Group’s branch offices and subsidiaries abroad are to be found in the section “Further information” on page 242 et seq. Strategic business groups I 08 Hannover Re Group Property & Casualty reinsurance Life & Health reinsurance Target Markets Financial Solutions • North America • Continental Europe Risk Solutions • Longevity Specialty Lines Worldwide • Mortality • Marine • Morbidity • Aviation • Credit, Surety and Political Risks • United Kingdom, Ireland, London Market and Direct Business • Facultative Reinsurance Global Reinsurance • Worldwide Treaty Reinsurance • Catastrophe XL (Cat XL) • Structured Reinsurance and Insurance-Linked Securities An overview Gross premium I 01 * in EUR million 2000020,000 17,068.7 13,774.2 13,963.4 14,361.8 1500015,000 12,096.1 10,274.8 11,428.7 9,289.3 8,258.9 1000010,000 8,120.9 50005,000 00 2006 2007 2008 2009 2010 2011 2012 1 2013 2014 2015 Group net income (loss) I 02 * in EUR million 1,150.7 12001,200 985.6 849.6 895.5 10001,000 721.7 733.7 748.9 606.0 800800 514.4 600600 400400 200200 (127.0) 00 -200(200) 2006 2007 2008 2009 2010 2011 2012 1 2013 2014 2015 Policyholders’ surplus I 03 * in EUR million 12,00012000 10,239.5 10,267.3 8,947.2 8,767.9 10,00010000 6,987.0 7,338.2 8,0008000 5,621.6 4,878.4 5,295.1 6,0006000 4,708.4 4,0004000 2,0002000 00 2006 2007 2008 2009 2010 2011 2012 1 2013 2014 2015 Book value per share I 04 * in EUR 80 66.90 70 62.61 60 60 50.02 48.83 50 37.39 41.22 40 40 30.80 24.03 27.77 23.47 30 20 20 10 0 0 2006 2007 2008 2009 2010 2011 2012 1 2013 2014 2015 Dividend I 05 * in EUR 4.75 2, 3 5 5 4.25 2 4 2 4 3.00 3.00 1.25 1.50 2 3 3 2.30 2.10 2.30 2.10 0.40 1.60 2 2 0.50 2.60 3.00 3.25 1 1 1.80 – 0 0 2006 2007 2008 2009 2010 2011 2012 1 2013 2014 2015 1 Adjusted pursuant to IAS 8 2 Dividend of EUR 3.25 plus special dividend of EUR 1.50 for 2015; EUR 3.00 plus special dividend of EUR 1.25 for 2014 as well as EUR 2.60 plus special dividend of EUR 0.40 for 2012 and EUR 1.80 plus special dividend of EUR 0.50 for 2007 3 Proposed dividend About us Hannover Re, with gross premium of more than EUR 17 billion, is the third-largest reinsurer in the world. We transact all lines of property & casualty and life & health reinsurance and are present on all continents with roughly 2,500 staff. Established in 1966, the Hannover Re Group today has a network of more than 100 subsidiaries, branches and represent- ative offices worldwide. The German business of the Hannover Re Group is transacted by our subsidiary E+S Rück. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück very good financial strength atings:r Standard & Poor’s “AA-” (Very Strong) and A.M. Best “A+” (Superior). Contents For our investors 2 Further information 242 Letter from the Chairman of the Executive Board 2 Branch offices and subsidiaries Executive Board of Hannover Rück SE 6 of the Hannover Re Group abroad 242 The Hannover Re share 10 Glossary 245 Our strategy 16 List of graphs, tables and charts * 250 Financial calendar 253 Contact information 254 Combined management report 22 Imprint 255 Annual financial statements 135 Notes 145 Supervisory Board 238 * Graphs, tables and charts are numbered and listed Report by the Supervisory Board 238 on page 250 et seq. Supervisory Board of Hannover Rück SE 241 Hannover Re | Annual Report 2015 1 Ulrich Wallin, Chairman of the Executive Board Dear Shareholders, Ladies and Gentlemen, The 2015 financial year was an exceptionally successful one for your company. This is reflected firstly in the record profit that we can report for what is now the fourth consecutive time. Even more signifi- cant, however, is the fact that in 2015 we were able to substantially strengthen the platform that we have put in place for achieving our financial goals going forward. In property and casualty reinsurance, for example, we again appreciably increased the confidence level of our loss reserves despite the diffi- cult market environment. This should help us to post continued good underwriting results even in the challenging years to come. In life and health reinsurance we further boosted the value of new business and, what is more, we improved the profitability of the existing portfolio by taking targeted actions. We have thus cemented a robust foundation for further increasing the underlying profitability of our life and health reinsurance business. When it comes to our investments, we took purposeful structural steps that should enable us to keep the return on investment broadly stable in absolute terms. This was sup- ported by further considerable growth in the portfolio of assets under own management, facilitated by a sharply higher operating cash flow compared to the previous year. As our valued shareholders, you can therefore rest assured that your company has established a very good basis for continued success in the coming years, which will be shaped by a challenging general business climate. Our foundation is the successful implementation of our strategic approach geared to “long-term success in a competitive business”. As we consider the highly satisfactory figures more closely, I would like to highlight the increase of around 17 percent in Group net income to EUR 1.15 billion. This is the first time that we can report a net profit for the Group in excess of EUR 1 billion. It is also pleasing to note that despite an intensely competitive market we enlarged our gross premium volume to EUR 17 billion.